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Shortlist announced for Victoria’s ‘largest-ever’ hospital project

Firms including Tetris Capital, Capella Capital and Plenary Group among shortlisted bidders for A$1.5bn Footscray Hospital PPP.

The Victorian government has announced the shortlist for the A$1.5 billion ($1.0 billion; €922 million) Footscray Hospital, billed as the largest-ever single hospital project undertaken in the state.

A total of three consortiums were shortlisted:

  • Advance West – Tetris Capital, John Holland, John Holland Services and ISS;
  • Examplar Health – Capella Capital, Lendlease and Spotless;
  • Plenary Health – Plenary Group, Multiplex, Honeywell and Compass.

The project is being procured as a public-private partnership, with the winning consortium responsible for the design, construction, finance and maintenance of the hospital.

The facility will be built on the site of an existing hospital and will feature 504 beds, allowing an extra 15,000 patients to be treated each year, according to government.

The winning bidder will be announced next year, with construction to begin in 2020 ahead of a projected opening date of 2025.

Victoria’s minister for health Jenny Mikakos said in a statement that the shortlist announcement was a “big milestone” for the project and that the government had conducted a “worldwide search” to find the best team for the job.

The Footscray Hospital is one of a number of PPPs being supported by the Victorian government after it won re-election in 2018 on the back of large infrastructure spending promises.

Earlier this year, it announced that DIF, John Laing and Plenary Group were among the shortlisted bidders for the A$7 billion-A$9 billion North East Link PPP, which the government has called the largest-ever road project to be built in the state’s history.

In contrast, concerns have been raised about the pipeline of PPP projects in other states, with think-tank Committee for Sydney calling on the New South Wales government to consider increasing its use of the procurement model to help get stalled projects off the ground.